We made it past the first year of the new decade — take a nice, deep breath.
After a major election, a global health crisis, and climate concerns at an all-time high, we need to consider what is waiting for us in 2021.
There are a lot of things to consider after the past year when it comes to renewables in the future — more than usual.
You’d want to know who can ride out the COVID storm and who can’t. A lot is at stake.
According to the International Renewable Energy Agency (IRENA), wind and solar power accounted for 90% of the world's newly added renewable capacity.
IRENA is celebrating its 10th anniversary; in its budget plan for 2020–2021, IRENA compares the beginning of the company when renewables were seen as costly, unreliable, and uncertain to now when IRENA names renewable energy the backbone of global development and climate strategy.
Renewable energy maintains a norm; not only is it incorporated in everyday life, but the effect is irreversible.
Imagine watching a commercial on an average product and you hear “carbon-efficient, all natural” — it reels you in! The very concept of a carbon-efficient product catches the attention of the average consumer.
In total renewable energy, the world has doubled its capacity in the past decade; the rate of increase signifies the reliance on renewables. The transition that lies ahead won’t happen in the blink of an eye, but rest assured that the major changes are in play as we speak.
Brave Green World
Time has not been a friend to quite a few companies that started off quite strong in the beginning of the “going green” trend at the start of the 2000s.
There’s a plethora of renewable production — the new outcome of the election is going to contribute to that. Energy storage will stay along the renewable route, but there’s an easier selection to watch — and to bet on.
No matter what route we decide on for renewable trends, the common denominator is a sufficient way to store the energy we make.
This is thinking long term on multiple planes — energy sources that are harnessed can be stored for longer periods of time.
Also, because of that convenient shelf life, the demand for renewables is increasing and won’t die down anytime soon.
It’s a healthy dynamic that pays off in the growth of this market.
This growth is projected to increase by 13 times in grid-scale storage by 2024 — in just three years.
The monetary equivalent in that growth rate is $71 billion.
By 2025, Global Market Insights sees energy storage systems reaching $500 billion by 2025. That’s in just four years.
The renewable energy boom is a massive opportunity that branches out into even more opportunities.
Energy storage is one of those branches. It’s a solid and secure way to get into the market.
Albemarle (NYSE: ALB)
As the world’s largest lithium producer, one would expect a company that supplies such a high demand could brave the 2020 storm.
The chemical manufacturing company reported “solid numbers,” though profits have declined.
Albemarle earned $0.92 per share, down 37% year over year. Its sales suffered a 15% decrease as well.
As much as $120 million will be cut in annual operating costs, due to be completed by the end of next year in order to boost profits.
Albemarle maintains optimism, expecting sales will run to about $3 billion. Still a decline but higher than the predicted amount Wall Street forecast for the company.
The scale doesn’t tip in Albemarle's favor when you also consider its free cash flow, foreboding a negative cut of at least $140 million.
Its stock is moving higher, as well as other those of other companies that take part in energy storage.
On the brighter side, Chile’s Economic Development Agency made a deal with Albemarle in early 2020.
Mining Global reported that according to this deal, Albemarle was allowed increased mining in distinct regions in Chile and expects to increase battery-grade lithium carbonate output from 24,000 to 80,000 tonnes.
Albemarle has taken some massive hits and as a result, its progress has been wobbly. It’s hard to stay on top in the midst of such a difficult year, and it is a true testament to the company’s strong foundation that it was able to do so.
SolarEdge Technologies Inc. (NASDAQ: SEDG)
SolarEdge has also had a rough 2020.
In the same quarter this time last year, the solar market was 46% higher than it is today.
SolarEdge most likely won’t come into growth until later next year at its earliest because of the high seasonal demand that comes with solar panels.
The Israel-based company has faced some challenges in 2020, one of which was shares falling 26% in just two weeks.
The pandemic graciously blessed SolarEdge with a delay in a residential battery system launch — a launch intended to keep up with the contenders competing in energy-storage systems.
Now, this is where things get interesting.
SolarEdge touts the “world’s first two-in-one electric vehicle charger and solar inverter” — a breakthrough that could prove to be in high demand for years to come.
The demand for electric vehicles gets higher every year, which is not surprising given the trend toward cleaner energy in the automotive industry, and it seems as though SolarEdge has capitalized on that.
The solar power SolarEdge provides displays an impressive range, from power optimizers to solar inverters.
SolarEdge is getting quite the reputation for disrupting coal and natural gas industries. If it is getting that sort of notoriety, it must be doing something right (or wrong, depending which industry you’ve got your stake in).
The competitiveness SolarEdge displays is paying off, broadening the horizon of products it supplies.
Electric vehicle chargers and powertrain components are queued up for manufacture by SolarEdge, catching the attention of many automakers that are looking to go green.
That's where the disruption is at play. If major automotive manufacturers follow SolarEdge's route, natural gas is at risk of being left behind. With the way things are shaping up for 2021, we’re going to side with SolarEdge over dated and dirty forms of energy like natural gas.
Enphase Energy (NASDAQ: ENPH)
Up 4.3% on the year, this energy management company is also the world leader in supplying microinverter-based solar-plus-storage systems.
Enphase is partnering with solar energy provider MSpectrum, a solar energy renewable provider headquartered in Pasig, Philippines.
Through the use of the energy division of Manila Electric Company (Meralco), solar customers would be provided with high-performance microinverters.
The IQ 7 products will be released in Enphase’s first quarter of 2021.
Home solar energy systems will be amongst the products, with a feature allowing customers to monitor their system panel by panel.
There are multiple systems that provide similar features, but what makes Enphase’s products stand out is their quick shutdown system.
The solar market in the Philippines — where the tropical climate is extremely compatible with the IQ 7 tech — is growing due to the Renewable Energy Act signed 12 years ago.
The IQ 7 technology is truly revolutionary when it comes to efficient home battery storage. We expect to see Enphase Energy have a very profitable 2021 and beyond.
Solid State Batteries
While you’re looking into energy storage technologies, you have to consider the factors that will contribute to the vital transitions from gas to electric.
One of those factors is solid-state batteries.
Most electric vehicles have a decent range with around 300 miles in one charge, right?
For comparison’s sake, the average range of a Honda Civic is around 430 miles.
And just for fun, a Maserati Granturismo can go 304.
Could EVs do better? Most definitely.
The solution? Solid State Batteries.
Why now after how far EVs have come?
Well it could have been sooner, but the solution finally came to earlier this year.
With the use of a solid state battery, a sufficient charge to 80% would take 15 minutes. That’s a huge shave off from the conventional hour or so it takes to reach the same capacity on standard electric car batteries today.
It took 4 decades to establish the solidification of the electrolyte that carries ions between the electrode and what causes the battery to work.
The reason why is because the standard was not solidification, but liquidation.
Hence the term, “solid state”.
The battery cell is the size and thickness of a playing card, discovered by the company that was recently recommended in our premium service, The Wealth Advisory.
Dedicated to the production of solid state lithium-ion batteries, this American battery company may have cracked the code that could take the use of electric vehicles to a different level.
There’s a lot more science and demand that goes into solid state batteries, for more insight on energy storage and the technology behind batteries, take a look at our newest acquisition in our premium publication The Wealth Advisory.
We highly recommend taking a look at the newest developments.